What's the purchase process to buy a property in Singapore City?

Authored by the expert who managed and guided the team behind the Singapore Property Pack

Yes, the analysis of Singapore's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Singapore. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Singapore real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in areas like Marina Bay, Orchard, and Sentosa. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How do I check if foreigners are allowed to buy the type of property I want in Singapore?

Foreigners can purchase private condominiums and apartments in Singapore without any government approval required.

You are restricted from buying landed houses, terraced houses, semi-detached houses, and bungalows in most areas of Singapore. The only exception is Sentosa Cove, where foreigners can buy landed properties but still need approval from the Singapore Land Authority (SLA).

Strata-titled landed properties within approved condominium developments are allowed for foreign purchase, as they fall under the condominium category rather than pure landed property classification.

New HDB (public housing) flats are completely off-limits to foreigners, though you can purchase resale HDB flats after meeting specific residency requirements and obtaining approval.

Check the property's tenure and development type with your real estate agent to confirm eligibility before making any offers.

What are the government restrictions or approvals I need before making an offer?

For private condos and apartments, no government approval is required before making an offer.

If you're interested in landed property in Sentosa Cove, you must obtain approval from the Singapore Land Authority before proceeding with any purchase. The SLA evaluates applications based on your economic contribution to Singapore, the property's intended use, and the development's exclusivity status.

Certain cluster housing developments and exclusive landed properties outside Sentosa Cove require SLA approval regardless of the buyer's nationality.

Mixed-use properties with residential and commercial components may have additional restrictions that require verification with the Urban Redevelopment Authority (URA).

Always verify the property's approval status with your real estate agent and conveyancing lawyer before signing any agreements.

How do I figure out the minimum down payment required and whether I qualify for a loan as a foreigner?

As a foreigner, you must provide a minimum 25% down payment when securing a bank loan in Singapore.

This 25% down payment consists of at least 5% in cash, with the remaining 20% payable through cash or CPF funds (if you're a permanent resident).

Banks will assess your loan eligibility based on your monthly income, employment status, existing debt obligations, and credit history. Foreign buyers typically face stricter lending criteria compared to Singapore citizens and permanent residents.

The maximum Loan-to-Value (LTV) ratio is 75% for your first property purchase, meaning you can borrow up to 75% of the property's value. For additional properties or longer loan tenures, the LTV ratio decreases significantly.

It's something we develop in our Singapore property pack.

What steps should I follow to get an In-Principle Approval (IPA) from a bank in Singapore?

An In-Principle Approval (IPA) is a provisional, non-binding agreement from a bank confirming the loan amount you're eligible to borrow.

Step	Required Documents	Timeline
1. Document Preparation	Passport, employment letter, 3 months' pay slips	1-2 days
2. Income Verification	Tax returns, bank statements, bonus letters	2-3 days
3. Debt Assessment	Existing loan statements, credit bureau report	1 day
4. Bank Submission	Complete application with all documents	Same day
5. IPA Processing	Bank's internal assessment and approval	3-7 working days
6. IPA Letter Issuance	Formal IPA letter with loan quantum	1-2 days
7. Property Search	House hunting within approved budget	Ongoing

How do I calculate all the upfront taxes, like Buyer's Stamp Duty and Additional Buyer's Stamp Duty?

Buyer's Stamp Duty (BSD) follows progressive tax brackets based on the property's purchase price or market value, whichever is higher.

The BSD rates are: 1% on the first SGD 180,000, 2% on the next SGD 180,000, 3% on the next SGD 640,000, and 4-6% on amounts exceeding SGD 1 million.

As a foreigner, you must pay an Additional Buyer's Stamp Duty (ABSD) of 60% on the property's purchase price or market value, whichever is higher, as of September 2025.

For example, on a SGD 1.5 million condo: BSD would be SGD 43,600, and ABSD would be SGD 900,000, totaling SGD 943,600 in stamp duties alone.

These taxes must be paid within 14 days of signing the purchase agreement, and failure to pay on time results in penalties and interest charges.

What is the exact process to make an offer and sign the Option to Purchase (OTP)?

The Option to Purchase process begins when you make a formal offer through your real estate agent to the seller's agent.

Once your offer is accepted, you pay an option fee, typically 1% of the purchase price, to the seller to secure the exclusive right to purchase the property.

The seller's lawyer prepares the Option to Purchase document, which outlines all terms and conditions of the sale, including completion timeline and special conditions.

You receive the signed OTP from the seller, which gives you 14 days (for private properties) to decide whether to proceed with the purchase.

During this 14-day period, you can conduct due diligence, secure final loan approval, and engage your conveyancing lawyer to review the terms.

How much of a deposit do I need to pay when exercising the OTP, and what's the timeline?

When exercising the Option to Purchase, you must pay the remaining deposit amount to reach a total of 5-10% of the purchase price, minus the 1% option fee already paid.

Most transactions require a 5% total deposit for the first SGD 500,000 and 10% for amounts exceeding SGD 500,000, though some sellers may negotiate different terms.

You have exactly 14 days from receiving the OTP to exercise it by paying the deposit balance and returning the signed document to the seller's lawyer.

If you fail to exercise the OTP within this 14-day period, the option automatically lapses, and you forfeit the 1% option fee paid to the seller.

The deposit amount is held in the seller's lawyer's client account until completion and forms part of your final payment to the seller.

What are the legal steps involved, and how do I find a conveyancing lawyer in Singapore?

Engage a licensed conveyancing lawyer immediately after deciding to exercise your Option to Purchase.

1. **Title verification and property searches** - Check for encumbrances, charges, and legal issues2. **Contract review and amendments** - Examine OTP terms and negotiate necessary changes3. **Caveat lodging** - Protect your interest by registering a caveat against the property title4. **Completion account preparation** - Calculate final payment amounts including all fees and adjustments5. **Final completion and registration** - Handle fund transfers and complete legal title transfer

You can find qualified conveyancing lawyers through major real estate agencies, the Singapore Law Society's directory, or referrals from your bank's preferred panel.

Choose lawyers with extensive experience in foreign buyer transactions, as they understand the specific requirements and potential complications.

It's something we develop in our Singapore property pack.

How do I complete the property valuation, loan approval, and final payment before completion?

Your bank will arrange an independent property valuation to confirm the property's market value aligns with your purchase price.

The valuation must meet or exceed your purchase price for the bank to release the full loan amount. If the valuation is lower, you may need to increase your down payment to cover the difference.

Submit your exercised Option to Purchase and valuation report to your bank for final loan approval, which typically takes 2-3 weeks to process.

Calculate your final payment amount by adding the loan disbursement to your deposit and subtracting any adjustments for property taxes, utility deposits, and maintenance fees.

Pay all stamp duties (BSD and ABSD), legal fees, and other completion costs 3-5 days before the scheduled completion date to avoid delays.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Singapore versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What happens on completion day and when do I get the keys to the property?

Completion day involves the final legal transfer of property ownership from seller to buyer through the lawyers.

Your lawyer transfers the balance purchase amount to the seller's lawyer, who then provides the transfer documents and property keys.

The Singapore Land Authority registers the transfer of title, making you the official legal owner of the property.

You receive the keys immediately after completion, typically on the same day or within 24 hours if completion occurs late in the day.

Your lawyer provides you with the completed transfer documents, title deed, and other important property documents for your records.

What common mistakes do buyers make when calculating stamp duties and loan eligibility in Singapore?

Many buyers miscalculate stamp duties by using the agreed purchase price instead of market value when market value is higher.

Common Mistake	Impact	Prevention Method
Using purchase price for stamp duty when market value is higher	Underpayment penalties and interest charges	Always use the higher of purchase price or market value
Not securing IPA before making offers	Failed transactions and forfeited deposits	Get IPA approval from multiple banks before house hunting
Underestimating total cash requirements	Transaction delays and additional borrowing costs	Calculate all upfront costs including legal fees and taxes
Overestimating loan eligibility as a foreigner	Insufficient financing and forced cash payments	Consult mortgage brokers familiar with foreign buyer policies
Missing ABSD payment deadlines	5% annual interest on late payments	Pay ABSD within 14 days of signing agreements
Ignoring debt servicing ratio limits	Loan rejection despite adequate income	Calculate total monthly debt obligations before applying

What are the usual delays or confusions with the Option to Purchase and completion timeline that I should avoid?

The most common delay occurs when buyers miss the 14-day deadline to exercise their Option to Purchase, resulting in automatic forfeiture of the option fee.

Bank loan processing delays frequently happen when buyers submit incomplete documentation or when property valuations come in below the purchase price.

Completion delays often result from last-minute legal issues such as outstanding charges on the property title or problems with the seller's ownership documents.

Cash flow problems arise when buyers underestimate the total upfront costs, including stamp duties, legal fees, and additional deposits required at completion.

It's something we develop in our Singapore property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Singapore Land Authority - Foreign Ownership Regulations
2. SG Luxury Homes - Foreign Buyer Rules 2025
3. Darren Ong - Complete Property Purchase Guide
4. SG Luxury Condo - Foreign Property Purchase
5. SingSaver - Condo Down Payment Guide
6. DollarBack Mortgage - Down Payment Requirements
7. WLP - In-Principle Approval Guide
8. Redbrick - IPA Process Guide
9. HomeJourney - Foreign Investment Guide 2025
10. SG Luxury Homes - Stamp Duty Guide 2025